More North American organizations plan to disclose pay information, survey finds
ARLINGTON, Va., Sept. 14, 2022 (GLOBE NEWSWIRE) -- In light of the increased legislation on pay transparency, the number of North American organizations that disclose pay rate and range information to prospective employees is expected to surge across the U.S., even in places without requirements. This, according to a new pulse survey by leading global advisory, broking and solutions company WTW (NASDAQ: WTW).
The 2022 Pay Clarity Survey found that 17% of companies are already disclosing pay range information in U.S. locations where not required by state or local laws. In addition, 62% of organizations are planning or considering disclosing pay rate information in the future, even where there are not local mandates requiring them to do so. This will include information such as hiring range and full salary range, with 58% of companies planning on doing the former and 48% the latter. The survey found that 71% of companies plan to use a consistent approach in determining which pay rate and range information will be disclosed across all jobs. Over half of organizations (57%) are applying a geographic pay policy to determine the pay rates or ranges, and they will differ based on location of the job.
Interestingly, some organizations that currently disclose pay rates are seeing more questions from current (38%) and prospective (27%) employees. Nearly one in six companies (16%) are also seeing an increased number of candidate applications.
“We expect the recent wave of pay transparency legislation to continue,” said Mariann Madden, North America Fair Pay co-lead, WTW. “Regulatory requirements are only one factor in the expected increase in disclosures and communication about pay. Job seekers and current employees want to know and understand that they are treated fairly and are provided with equal opportunities to thrive and grow within the organization.”
Still, some companies are holding back on communicating pay information. About three in 10 (31%) organizations say their pay programs are not ready for this kind of transparency. Almost 30% cite administrative complexity and 25% cite lack of clear job architecture as reasons to hold back. In part due to these underlying considerations, almost half of all organizations (46%) cite possible employee reactions as a reason for holding back on communicating about pay.
The survey also found that most organizations plan to provide a narrative on their approach to managing pay equity. One-third of North American organizations (33%) are already disclosing information on their approach to managing pay equity, and 53% expect to do so in the future and on a global level.
“We’re seeing a clear trend among employers around the globe publicly committing to fair pay. In North America, companies are beginning to disclose their adjusted pay gaps, while in Europe more organizations are sharing their fair pay ambitions as well as their plans to monitor, track and communicate progress toward their commitments. We expect that level of transparency will likely become the norm as external stakeholders demand more clarity and visibility into companies’ pay management practices,” concluded Lindsay Wiggins, North America Fair Pay co-lead, WTW.
About the survey
WTW’s 2022 Pay Clarity Survey, North America was conducted between June 27 and July 8, 2022. In North America, a total of 388 respondents completed the survey.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.
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